WPP to sell assets and cut jobs in radical shake-up to counter AI threat
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WPP, the UK-based advertising group, is undertaking a major restructuring to address challenges posed by AI and declining performance. The company plans to cut costs by £500 million annually by 2028 through asset sales and job reductions, incurring £400 million in restructuring costs over two years. WPP aims to become a "simpler, lower-cost, AI-enabled business" by streamlining operations and investing in high-growth areas like AI transformation, including a new "enterprise solutions" division. The reorganization will consolidate its numerous units into four main divisions across four regions, integrating agencies like Ogilvy, VML, and AKQA under a unified back office. This follows a reported 3.6% drop in comparable revenue and a 26% fall in profit before tax.
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AI-ExtractedWPP slashed its dividend for 2025 by 62% to 15p.
WPP will reorganize into four main divisions: media, creative, production and enterprise solutions.
WPP reported a 3.6% drop in comparable revenue to £13.6bn for 2025.
WPP plans to achieve £500m of annual savings by 2028, at a cost of £400m over two years.
Our recent underperformance has been driven by excessive organisational complexity.
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